One of the main reasons we often end up with no money is that we don’t budget or even keep track of what we spend and on what. I have been off doing just that for many years too.
Having a budget and sticking to it is hard, especially at first. Change is something we all resist but after a while, it becomes easier and can even be fun. We humans, are very adaptable and can handle change in many sorts of ways. Budgeting, therefore, is no different.
How Do You Live On A Tight Budget? Can you? Should you? Having or developing the following are needed to be able to stick to a tight budget:
- Discipline
- Determination
- Self-worth
- Goals
- Strong voice
By developing these habits and traits you can be a successful budgeter to get where you want to be.
So how to get from a happy-go-lucky spender into a die-hard, hard-core budget expert? Well, the bad news is that it won’t happen without some serious effort on your part to change.
But remember what I said about us being very adaptable humans? Yes? Good, that’s also the easy part.
We can change and adapt to new situations very easily. In fact, we can develop good, new habits in as little as 20 repetitions. We can use this to our advantage by understanding that every change we make will only feel uncomfortable for a short time and this will boost our resolve to make things happen.
Goals
Setting a goal at the outset is important. If you don’t then why are you trying to budget? What do you want to achieve? Just saving money? That’s your goal. Spend less to reduce debt? That’s your goal. Spend less to work less? You guessed it, that’s your goal!
Clearly defining your goal will give you a target and a direction. It will also give you a mental boost when you get closer to your goals. This is very important as you need to have a good, positive mindset for this.
If your goal is set over a longer time frame then consider trying to break down your goal into smaller chunks if you can. This way each time you reach a milestone you can give yourself a small reward.
Positive reinforcement in the form of small treats or even just feeling great about reaching a milestone is key to your continued success so even if you think you don’t need a treat, take it anyway. The small indulgence will do you good.
Discipline
This is where you break down your budget into smaller sub-components so you can focus on them more effectively. It’s impossible to try and keep a budget in your head when you have spent money on 30 or 40 items and bills each week.
Write everything down, either using a pen and paper or keep a spreadsheet on your PC. Using a tool like Google Docs means you can update your spreadsheet from your mobile as well as your PC to keep an even better track of your spending.
Keeping a close eye on everything is very important as you will need to know if and when you have gone over budget, where, and how.
By correctly allocating cash to each bill and item you need to spend money on will mean you have more control and will make it easier to stick to your budget. Being disciplined enough to be a 24×7 surveillance regime on yourself will be hard at first but after making 20 or so entries into your budget planner it will become habit-forming.
Determination
This is where you put your money where your mouth is so to speak. Sticking to your guns in the early stages will be hard but will after a very short time get easier. You will stop missing your everyday treats at Starbucks and will not only feel better about saving that $5-$10 a day you will feel happier having coffee in the comfort of your own home instead.
If like me you were really into junk food then you will also feel healthier too as a result and it’s often said ‘healthy body, healthy mind’ This is very true.
With determination, I have been able to drop 15kg in a year and feel so much better. Done purely with willpower and saving some considerable dollars in the process too.
As previously mentioned, having milestones will help you to stay focused and determined. Seeing yourself inch forward each day, making constant progress, is a real boost and will help keep you strong and determined to keep you on budget.
Self Worth
Valuing yourself is very important. By taking control you are telling yourself that you matter. That you want good things for yourself and to feel good about your life.
At the beginning of the budget, you may feel like your own worth is low and you feel punished by having to make this sacrifice. This cannot be further from the truth.
You are in fact, recognizing that you do matter and that by doing this you are giving yourself the best chance at getting ahead.
Acknowledging that you matter and have value is another way you will boost your feelings of positivity and resolve. This in turn will drive you forward, seeing your success, which will make you feel a sense of accomplishment, boosting you even more.
Once you have your budget and newly acquired habits in place you will begin your journey on a slowly increasing, upward spiral toward your goal and success.
Strong Voice
There will be many temptations along the way. You need to have a strong voice both inside and outside. Your inner voice is akin to your determination and discipline.
By saying no to yourself you are giving yourself more and better rewards in the long run.
Saying no to others is much harder but also better for you. It’s easy to blow your budget when a friend says to you ‘Hey, let’s try that new fancy restaurant that’s just opened’ or ‘I need a break, let’s go on a nice vacation together’
Quite often these people, usually family and friends are well-meaning. Of course, they don’t want you to suffer in any way but by pressuring you to spend money you don’t have, they are doing exactly that.
What you can do is explain to them what you are doing and why. If they are decent people then they will not only understand but will also try and help you, maybe even budgeting alongside you (tip: if that does happen try to make a fun competition out of it, it’s a win-win as you are both saving)
If you have family or friends who mock you or try to force you into spending money you don’t have or just want to keep then ask yourself is it worth spending so much time with them if they are so negative?
Surrounding yourself with positive people is also an important part of keeping you on the path you have set for yourself.
Can you budget?
Yes of course you can, it’s easy to start. All you need to do is begin monitoring your expenses and expenditure, put steps in to spend less and keep track of everything you do end up spending.
You don’t need a computer or mobile phone to do it. All you need as a bare minimum is a notepad and a pencil which you can get for less than a dollar.
Should you budget?
Unless you have more money than you can ever possibly spend or count then my answer is yes. Keeping a good level of control over your outgoings and incomings is very important not only for now but for your future.
Unexpected things happen and for many people (40% of Americans) having an emergency bill of just $400 cannot be paid and could cause serious financial pressure. Having a budget that includes an emergency fund will keep you out of this bracket and will give you peace of mind and a sense of calm even if something unexpected happened.
Conclusion
Budgeting is needed for most households but it doesn’t have to be a negative thing in our lives.
Famous psychologist Jordan Peterson has said as much with his world views, not so much about budgeting but about keeping your house in order. This means not only being clean and tidy but areas of your life that can bring you down and keep you feeling pressured and miserable.
Budgeting also teaches us responsibility and improves our self-worth which can then lead to good things like you helping others or achievements in other parts of your life.
So start your plan today, get a budget plan together with a goal and some milestones. Stick to it, be strong, and enjoy the rewards that will come in due course.
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